Accumulated Fund


DEFINITION of 'Accumulated Fund'

The capital fund of a nonprofit organization. Money is directed into the accumulated fund when revenues are greater than expenditures; money is directed away from the accumulated fund (withdrawn) when expenditures are greater than revenues.

BREAKING DOWN 'Accumulated Fund'

Nonprofit organizations, such as clubs, societies and charities, have capital accounts known as accumulated funds. Accumulated funds include money that is set aside for the purchase of capital or fixed assets, including real property and certain equipment.

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  1. Do nonprofit organizations pay taxes?

    Section 501 of the Internal Revenue Service (IRS) tax code exempts qualified nonprofit organizations from federal taxes. ... Read Full Answer >>
  2. Do dividends affect working capital?

    Regardless of whether cash dividends are paid or accrued, a company's working capital is reduced. When cash dividends are ... Read Full Answer >>
  3. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>
  4. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  5. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  6. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>

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